ByteDance, the owner of the TikTok video service, has begun developing an advanced accelerator for artificial intelligence tasks in collaboration with American microchip manufacturer Broadcom. As technology competition between the US and China intensifies, this move will allow the Chinese company to strengthen its position in the fast-growing AI technology market.
According to Reuters, the new chip will be manufactured using a 5-nanometer process technology and will comply with restrictions imposed by US export control rules on advanced chips. This compliance will enable ByteDance to maintain stable access to high-performance chips despite US sanctions restrictions.
Since Washington imposed export controls on advanced semiconductors in 2022, there have been no public announcements of chip development cooperation between Chinese and American companies using the 5nm process. Deals between the US and China in this sector have typically involved less advanced chips.
Investment, Production, and Strategic Partnership
The development and production of such processors will require significant investments, making cooperation with Broadcom essential for reducing costs while ensuring a stable supply of semiconductors. Production will be carried out at the factories of the Taiwanese company TSMC.
ByteDance is actively developing areas related to artificial intelligence and requires powerful processors to improve its algorithms. In addition to TikTok, the company owns several other popular applications, including the Doubao chatbot, which has an audience of 26 million users. Developing its own cutting-edge AI processor is crucial for ByteDance.
Currently, ByteDance uses Nvidia chips, but access to the most advanced offerings is limited due to US export restrictions. Last year, the company acquired Huawei Ascend 910B chips and managed to accumulate stocks of Nvidia chips, including the high-performance A100 and H100, purchased before the US sanctions, and the A800 and H800, produced for the Chinese market but later restricted. In total, ByteDance committed $2 billion to purchase Nvidia chips last year.
However, despite the big plans, TSMC is unlikely to begin production of these chips this year as the development process is still in the design stage, notes NIXSOLUTIONS. Nevertheless, the partnership with Broadcom is a strategically important step for ByteDance, demonstrating its commitment to technological independence.
ByteDance and Broadcom did not respond to repeated requests for comment from media outlets. TSMC also declined to comment. We’ll keep you updated as more information becomes available.